Our retail research team has created 3 stock lists, namely Growth, Value and Yield.
|The Growth List comprises of small-mid capitalisation companies with business catalysts which will potentially grow their earnings in the near future. The Growth portfolio would be suitable for investors looking for higher returns and are willing to tolerate the risk of higher short-term volatility of stock prices.|
|The Value List focuses on companies which are undervalued based on their share prices as compared to the company fundamentals. It would be suitable for conservative investors who prefer price stability and have a longer investment horizon.|
|The Yield List comprises of stocks that provide consistent dividend pay-out. It would be suitable for investors whose primary focus is to gain regular dividend income from their investments.|
September Market Overview
It was a tale of two halves in the month of Sep. In the first two weeks, Singapore stocks were thumped by escalating US-China trade row and currency turmoil in emerging markets.
But sentiment turned around in the third week as bargain hunting emerged and investors started looking beyond the trade salvoes even as China called off trade talks and the STI ended 1.4% higher than in Aug.
Among the STI component stocks, gainers beat losers by 2-to-1, with some high beta stocks, Sembcorp Industries (+11.9%), Yangzijiang (+11.6%) as well as dividend counters StarHub (+8.8%), ComfortDelGro (+7.1%) and ST Engineering (+6.7%) leading the way. Top on the losing side were Golden Agri (-9.5%), Hongkong Land (-4.3%) and Ascendas REIT (-3.7%).
Ytd, the STI has retreated 4.3% (Aug: -5.6%) giving a total return of -1.0% (Aug: -2.5%), inclusive of dividends. On an equal weighted basis, the average loss of STI constituents was 5.2% (Jun: -7.0%), with 60% of 30 stocks still in the red.
Against this backdrop, Market Insight’s Growth, Value, Yield (GVY) basket of stocks recovered 0.4ppt in Sep to yield an average ytd loss of -0.9%, outperforming the STI by 4.3ppt.
Growth List +1.1% YTD
Average total return of the Growth portfolio was eroded by persistent weakness in tech counters, Venture Corp and Valuetronics over the uncertain demand outlook for some of their products, and APAC Realty due to slower private home transactions post property cooling meaures in early July.
The portfolio return was also dented by a continued slide in China Sunsine after management flagged that its selling prices may have peaked and worries that US tariffs could dampen demand for its rubber chemicals.
This allowed iFAST to overtake it as the top performer within the Growth portfolio.
Value List -1.2% YTD
The Value portfolio chalked an all-round improvement in of its existing holdings although overall performance was still dragged by earlier losses in divested stocks.
We added GentingS’pore to the Value basket as the stocks has corrected 25% from its recent high to crisis level valuation, which is unwarranted.
Yield List -3.9% YTD
The Yield portfolio notched a 0.7ppt gain last month as a sharp positive reversal in StarHub was partially offset by softer performances in the other constituents within the basket.
Note: * Including dividends
** Priced in USD
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This document is being distributed for general information only and it does not constitute an offer, recommendation or solicitation to enter into any transaction or adopt any hedging, trading or investment strategy, in relation to any securities or other financial instruments. This document is for general evaluation only, it does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons.
Opinions, projections and estimates are solely those of Maybank Kim Eng Securities at the date of this document and subject to change without notice. Past performance is not indicative of future results and no representation or warranty is made regarding future performance. Any forecast contained herein as to likely future movements in rates or prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in rates or prices or actual future events or occurrences (as the case may be).
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